Monday, February 02, 2009

Beware Obama's Bad Bank

The bad bank to buy up toxic assets shows Obama can corporafornicate in Bush-like fashion. I thought that was the Federal Reserve's plan. The Fed uses leverage to buy back cyanide-laced Tylenol investment products. Recall greed and leverage got America into its current fix.

Obama's promise to waive IRA penalties for people trying to save their homes? Haven’t seen it, but I did notice the private equity boondoggle for firms buying back debt on the cheap.

NPR noted the purpose of the bad bank is to get toxic assets back into investors hands. What? Should J & J not have destroyed all the Tylenol they pulled from the shelves? Should they have put it in bad inventory and sold it through discount stores?

The big money boys want to restart securitization and Obama's bad bank would facilitate them. Be sure to check the freshness date on your CDO's. The Corporawhorehouse on Pennsylvania Avenue has a new occupant.

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